Corn Shortage

[dan_s]

Farmers are asking the EPA for an ethanol blending waiver for gasoline sales. Spokesman for the administration say that is not necessary even in the face of record corn prices and a drought.

A blending waiver would increase US crude oil consumption by 200,000 barrels per day or more - possibly up to a half million barrels per day if ethanol blending is totally eliminated.

Food shortages this winter will cause starvation in many third world nations. Despite this dire prediction, administration more interested in protecting "green" fringe elements. There is nothing "green" about ethanol. clearing land to grow more feed stock for ethanol is the #1 cause of deforestation.

http://www.reuters.com/article/2012/07/19/us-usa-drought-idUSBRE86F1D420120719

[dan_s]

Drought conditions now extend over more than 60 percent of the lower 48 states, the government said. The Department of Agriculture on Wednesday extended drought aid to an additional 39 counties designated as primary natural disaster areas, bringing such aid to a total of 1,297 counties across 29 states.

Vilsack said rising grain prices would mean meat and poultry prices will be higher this year and next, although the inflation may be delayed as farmers start culling their herds due to high feed prices and meat supplies stay adequate.

But the outlook for higher food prices could add up to another headache for Obama as he faces a November election with high joblessness and slower economic growth.